New rules needed to cover risks from cloud computing, says Bank of England

LONDON, Oct 8 (Reuters) – New rules will be needed to deal with operational risks from banks relying on outsourced ‘cloud’ computing from Amazon (AMZN.O), Google (GOOGL.O), Microsoft (MSFT.O) and others for providing services to customers, the Bank of England said on Friday.”Regulated firms will continue to have primary responsibility for managing risks stemming from their outsourcing and third-party dependencies,” the BoE’s Financial Policy Committee said in a statement.”However, additional policy measures, some requiring legislative change, are likely to be needed to mitigate the financial stability risks stemming from concentration in the provision of some third-party …
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